Dispensary co-owner, landlord agree to drop pot sales

While one owner of a medical-marijuana dispensary is continuing a legal fight with the city of Dana Point, his partner and former landlord have agreed to keep marijuana out of town.

Patrick Munoz, Dana Point's attorney, said Dr. David Sales, former landlord for Beach Cities Collective at 26841 Calle Hermosa, agreed not to allow the sale of marijuana at his property. Tim Louch, a co-owner of the dispensary, agreed not to sell marijuana in town, Munoz said.

If the two break the agreement, the city can slap about $1.2 million in civil penalties against each of them, Munoz said.

The city entered similar agreements with other dispensaries to get them out of town, including Redwood Sanctuary and Dana Point Safe Harbor Collective, which was raided by police last April.

This month, Orange County Superior Court Judge William Monroe ordered Beach Cities Collective and Louch's former partner, Dave Lambert, to pay Dana Point $2.4 million in civil penalties in a lawsuit in which the city accused Beach Cities of operating illegally. The judgment came after an almost two-year fight between the city and the collective.

"I think the whole thing is just ridiculous," said Lambert, who has appealed the city's lawsuit victory. "From the standpoint of BCC, I think (Sales and Louch) did what they needed to do, but myself and the collective will continue to fight."

Munoz said, "We might have offered the same to (Lambert), but he chose to fight us tooth and nail."

Sales said although he signed the agreement, he doesn't admit to having any connection to marijuana.

"I was only a landlord," Sales said.

Dana Point also has won lawsuits against dispensaries Holistic Health and The Point Alternative Care. The case involving Holistic Health, 24582 Del Prado, was decided March 21 by Orange County Superior Court Judge David Chafee. A hearing on penalties has not been scheduled.

Holistic Health's attorney, Alison Adams, had no comment on whether the dispensary plans to appeal.

The Point Alternative Care, 34213 S. Pacific Coast Highway, may have to pay more than $1.9 million in civil penalties. Beach Cities and Point Alternative were asked to fork over the maximum allowed for violations of business and professions and health and safety codes.

The dispensaries have said they provide medicine to sick people. However, the city argues that they were making profits from selling pot for nonmedical purposes. State law allows nonprofit collectives to distribute marijuana to patients with a doctor's recommendation. The illegal sale of a controlled substance is considered a nuisance.

As part of the Point Alternative and Beach Cities judgments, the pot shops cannot reopen. Even if Beach Cities wins its appeal, it could not return to its former spot because of its former landlord's agreement with the city.